Pros

Stylish interior

Punchy diesel

Impressive fuel economy

Comfortable and composed ride

Cons

Mercedes charges extra for some gear

Auto prone to occasional clunky downchange

It was only a decade ago that entry-level luxury sedans were a must-have. These days they still account for a large chunk of sales for the leading prestige brands, although the emergence of new soft-roader-style wagons and more affordable hatchbacks has seen their dominance eroded.

Not that it's stopped the continual improvement and competitiveness that's defined the breed, the latest example of which can be seen in Mercedes-Benz's C-Class range. A new seven-speed automatic transmission is fitted to all models while the diesels - including a new entry-level C200 CDI model - get an engine stop-start system partly responsible for further lowering fuel use.

But it's the sharply priced C250 CDI that's likely to appeal to most.

Price and equipment

The updated C-Class doesn't bring much in the way of extra equipment, although there's still a generous smattering. Partial electric seats (you still have to slide them back and forth), alloy wheels, cruise control, dual-zone climate-control airconditioning, Bluetooth connectivity and rain-sensing wipers are all there.

However, the seats are only vinyl (albeit mimicking leather) on the C200 CDI. If you want cow-made leather you need to step up to the C250, which brings other goodies and more power to justify the hike. Additions include trim and colour changes, additional interior lighting, a rear arm rest, 18-inch alloy wheels and a larger colour screen with the Comand system that includes a 10GB hard drive for downloading music.

It also incorporates internet connectivity (using your smartphone) and there's a smarter satellite-navigation system that can recommend a route that will use less fuel.

Safety is covered by nine airbags, a tyre pressure-monitoring system and Pre-Safe, which prepares seatbelts and other safety functions if a crash is imminent. There's also a display to show how many of the rear belts are in use.

Under the bonnet

Just 2.1 litres may not sound much for an engine but the turbocharger of this modern unit makes for oodles of grunt. And while it's the same basic engine used in the C200 CDI, a bigger turbo means there's a full 50 per cent more power and torque, so the engine lacks nothing when it comes to good, usable mid-range punch, with a hearty 500Nm on tap from just 1600rpm.

Squeeze the throttle gently and there's instant urge, although if you push too hard and provoke a downchange for the seven-speed auto it's less than elegant, with an unwanted surge.

The 150kW power peak is rarely needed because you can just rely on the effortless mid-range.

The stop-start system (it can be disabled with the Eco button) shuts down the engine and quickly restarts it when you take off. Impressively, and unlike some other systems, there's also no dip in the headlights or surge from the airconditioning when the car is starting or stopping.

Even better is that the additional grunt brings with it fuel savings, with a claimed figure of 5.1 litres per 100 kilometres. While we couldn't match that in everyday driving, the 7L/100km we typically saw is still impressive.

How it drives

Some of its rivals have tilted towards sharper dynamics rather than comfort with their compact sedans but Mercedes has ensured there's plenty in the way of compliance from the well-sorted suspension on the C-Class.

It does a beautiful job of soaking up imperfections and recovering quickly from bumps without detracting from the competent cornering manners.

It makes for a relaxed tourer that doesn't shy away from corners, with good steering feel and reassuring brakes.

Comfort and practicality

Arguably the least impressive part of the previous C-Class was its somewhat dour interior. But black plastics have given way to a more stylish dash design inspired by the larger E-Class.

The display screen sits high on the dash, flanked by nicely tailored materials and stylish finishes, while the collection of buttons and dials is logically laid out.

The only complaint is the location of the main controller for the Comand system, which sits behind the gear selector.

There's plenty of storage, while the rear seats are relatively spacious considering the style of car. The boot, too, is usefully wide and spacious.